What is the Crypto Spot Market?
Beginner traders can indeed find the spins of crypto convoluted to wrap their heads around.
Still, the market is not in isolation and borrows many terms from the legacy system. Even the very bedrock of crypto is heavily reliant, even conjoined with traditional finance architecture. It only makes sense. All open markets are driven by supply and demand--Crypto is no exception.
Often, the quickest way for new traders to delve in, even own their first crypto, is through a cryptocurrency exchange. These ramps allow the exchange of fiat for crypto and vice versa. They are purposely meant to facilitate swapping, nothing more, with the delivery of crypto done immediately. For this, these exchanges are called spot/physical markets. For every $100, you'll receive its equivalent in BTC at spot rates delivered straight to your BTC wallet.
Spot crypto transactions can be via a cryptocurrency exchange or an Over-The-Counter (OTC). In both cases, trades occur electronically. However, in the latter's case, the transaction is directly between two parties without reliance on an exchange.